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MCHP vs TXN
Which Stock Would AI Choose? Microchip Technology (MCHP) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- Texas Instruments (TXN) boasts a significantly larger market capitalization of approximately $256 billion compared to Microchip Technology's (MCHP) $51 billion, reflecting greater scale and stability.
- TXN demonstrates superior profitability with a 29% profit margin and 32% return on equity (ROE, a measure of how effectively a company uses shareholders' equity to generate profits), versus MCHP's negative margins amid recent challenges.
- Recent market activity shows TXN surging over 40% in the past month and 62% year-to-date (YTD), outpacing MCHP's 48% YTD gains and weekly rallies around 13%.
- Both stocks benefit from semiconductor sector momentum driven by AI infrastructure and industrial demand, but TXN exhibits stronger quarterly revenue growth at 19% year-over-year (yoy).
- Forward price-to-earnings (P/E, a valuation metric comparing stock price to expected earnings) ratios are similar at around 37 for both, suggesting comparable growth expectations.
- Analyst targets indicate modest upside potential, with TXN at higher absolute levels reflecting its premium positioning.
Introduction
Microchip Technology (MCHP) and Texas Instruments (TXN) are leading players in the analog and mixed-signal semiconductor space, powering everything from automotive systems to industrial automation and AI infrastructure. This stock comparison is particularly relevant for investors and traders navigating the semiconductor sector's rally amid recovering demand and technological shifts. With both companies reporting improved quarterly results and benefiting from broader market enthusiasm, understanding their relative performance, valuation, and growth drivers can inform portfolio decisions in a cyclical industry prone to volatility.
MCHP Overview and Recent Performance
Microchip Technology (MCHP) designs and manufactures microcontroller, analog, and connectivity semiconductors for diverse applications including data centers, automotive, and aerospace. In recent market activity, MCHP shares have rallied sharply, climbing over 13% in a recent week and approaching 52-week highs near $94, with YTD gains of about 48%. This momentum stems from product launches like post-quantum cryptography security chips and hydrogen masers for enhanced manufacturing capacity, alongside anticipation for quarterly earnings. Sentiment has shifted positively amid a semiconductor boom fueled by AI and industrial recovery, though profitability remains pressured with negative margins and high trailing P/E above 86. Quarterly revenue grew 16% yoy, signaling demand stabilization.
TXN Overview and Recent Performance
Texas Instruments (TXN) is a global leader in analog chips and embedded processors, serving markets like automotive, communications, and enterprise computing. Shares have surged in recent weeks, posting over 40% monthly gains and 62% YTD, trading around $217 amid strong Q1 results showing 19% yoy revenue growth and 22% analog chip expansion. Positive earnings sentiment, robust 29% profit margins, and a solid dividend yield have bolstered investor confidence. Broader sector tailwinds from AI infrastructure and manufacturing rebound have driven performance, with forward P/E near 37 balancing growth prospects against cyclical risks. TXN's scale provides resilience in volatile conditions.
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Head-to-Head Comparison
Both MCHP and TXN focus on analog semiconductors, but TXN's diversified portfolio and $256 billion market cap dwarf MCHP's scale, offering better sector exposure stability. Growth drivers include AI infrastructure and industrial automation for both, yet TXN edges with superior EPS growth at 31% yoy versus MCHP's revenue-focused rebound. Recent momentum favors TXN's explosive monthly gains over MCHP's weekly surges. Risk factors are similar—cyclical demand and supply chain issues—but MCHP faces higher debt/equity at 82% and negative ROE. Market sentiment leans toward TXN for its profitability edge.
Tickeron AI Verdict
Tickeron's AI models currently favor Texas Instruments (TXN) over Microchip Technology (MCHP), citing stronger trend consistency, superior margins, larger scale, and explosive recent momentum amid semiconductor recovery. While MCHP shows promising product catalysts, TXN's relative positioning suggests higher probability of outperformance in the near term, subject to market dynamics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is MCHP is a StrongBuy and TXN is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
MCHP’s FA Score shows that 0 FA rating(s) are green whileTXN’s FA Score has 4 green FA rating(s).
- MCHP’s FA Score: 0 green, 5 red.
- TXN’s FA Score: 4 green, 1 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
MCHP’s TA Score shows that 4 TA indicator(s) are bullish while TXN’s TA Score has 4 bullish TA indicator(s).
- MCHP’s TA Score: 4 bullish, 4 bearish.
- TXN’s TA Score: 4 bullish, 4 bearish.
Price Growth
MCHP (@Semiconductors) experienced а +7.81% price change this week, while TXN (@Semiconductors) price change was +5.63% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.34%. For the same industry, the average monthly price growth was +5.81%, and the average quarterly price growth was +92.59%.
Reported Earning Dates
MCHP is expected to report earnings on Aug 04, 2026.
TXN is expected to report earnings on Jul 22, 2026.
Industries' Descriptions
@Semiconductors (+4.34% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| MCHP | TXN | MCHP / TXN | |
| Capitalization | 51.6B | 274B | 19% |
| EBITDA | 1.18B | 8.82B | 13% |
| Gain YTD | 51.101 | 75.587 | 68% |
| P/E Ratio | 432.91 | 51.47 | 841% |
| Revenue | 4.71B | 18.4B | 26% |
| Total Cash | 240M | 5.1B | 5% |
| Total Debt | 5.54B | 14B | 40% |
MCHP | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 63 | 71 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 69 | 22 | |
SMR RATING 1..100 | 91 | 31 | |
PRICE GROWTH RATING 1..100 | 40 | 7 | |
P/E GROWTH RATING 1..100 | 57 | 25 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
TXN's Valuation (69) in the Semiconductors industry is in the same range as MCHP (89). This means that TXN’s stock grew similarly to MCHP’s over the last 12 months.
TXN's Profit vs Risk Rating (22) in the Semiconductors industry is somewhat better than the same rating for MCHP (69). This means that TXN’s stock grew somewhat faster than MCHP’s over the last 12 months.
TXN's SMR Rating (31) in the Semiconductors industry is somewhat better than the same rating for MCHP (91). This means that TXN’s stock grew somewhat faster than MCHP’s over the last 12 months.
TXN's Price Growth Rating (7) in the Semiconductors industry is somewhat better than the same rating for MCHP (40). This means that TXN’s stock grew somewhat faster than MCHP’s over the last 12 months.
TXN's P/E Growth Rating (25) in the Semiconductors industry is in the same range as MCHP (57). This means that TXN’s stock grew similarly to MCHP’s over the last 12 months.
| MCHP | TXN | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | 2 days ago 63% |
| Stochastic ODDS (%) | 2 days ago 71% | 2 days ago 70% |
| Momentum ODDS (%) | 2 days ago 65% | 2 days ago 65% |
| MACD ODDS (%) | 2 days ago 68% | 2 days ago 53% |
| TrendWeek ODDS (%) | 2 days ago 68% | 2 days ago 61% |
| TrendMonth ODDS (%) | 2 days ago 74% | 2 days ago 57% |
| Advances ODDS (%) | 2 days ago 68% | 2 days ago 58% |
| Declines ODDS (%) | 9 days ago 73% | 4 days ago 56% |
| BollingerBands ODDS (%) | 2 days ago 81% | 2 days ago 62% |
| Aroon ODDS (%) | 2 days ago 77% | 2 days ago 49% |
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TXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, TXN has been closely correlated with MCHP. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then MCHP could also see price increases.
| Ticker / NAME | Correlation To TXN | 1D Price Change % | ||
|---|---|---|---|---|
| TXN | 100% | +1.35% | ||
| MCHP - TXN | 75% Closely correlated | +2.47% | ||
| ADI - TXN | 74% Closely correlated | +1.37% | ||
| MCHPP - TXN | 72% Closely correlated | +2.04% | ||
| LRCX - TXN | 68% Closely correlated | +1.18% | ||
| ENTG - TXN | 67% Closely correlated | +3.86% | ||
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